Lumentum Holdings (LITE) shares surged 6.79% in pre-market trading on Wednesday following the company's impressive fourth-quarter financial results and a wave of analyst upgrades. The optical and photonic products provider demonstrated strong performance, beating expectations and providing an optimistic outlook.

Lumentum reported fiscal fourth-quarter revenue of $480.7 million, jumping 56% year-over-year and surpassing analysts' expectations of $470.5 million. The company's adjusted earnings of 88 cents per share also beat estimates of 81 cents. Lumentum's CEO expressed confidence in the company's growth trajectory, stating they expect "continued strong demand" for their AI data center and long-haul solutions, with aims to surpass $600 million in quarterly revenue by June 2026 or earlier.

The strong results and positive outlook triggered a series of analyst upgrades and increased price targets. Barclays raised its target to $135 from $75, while JP Morgan increased it to $145 from $123. Other firms including Jefferies, UBS, and Needham also boosted their price targets, reflecting growing confidence in Lumentum's prospects. The company's performance and the broader market's enthusiasm for AI-related technologies appear to be driving factors behind the stock's significant pre-market rally.